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Introduction to Title I Fiscal Requirements

Presented by Kristen Tosh Cowan, Esq.

Brustein & Manasevit, PLLCktoshcowan@bruman.com

Spring Forum 2011

Overview 1) LEA-to-School allocations2) Set asides3) Equitable Services allocation3) Equitable Services allocation 4) Carryover 5) Comparability6) Reauthorization Predictions

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Resources -- Allocations

Statute Section 1113

Regulations Regulations 34 CFR §200.77-78

Non-regulatory Guidance August 2003

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Resources – Cross-cutting

“Title I Fiscal Issues” Feb 2008www.ed.gov/programs/titleiparta/

fi l id dfiscalguid.doc Consolidating funds in schoolwide

programs, MOE, SNS, Comparability, Grantbacks, Carryover

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LEA-to-School Allocations

“Ranking and Serving” Rules 1) Identify Eligible Schools

2) Rank Schools in Order of Poverty 2) Rank Schools in Order of Poverty 3) Serve Schools Strictly in Accordance

with Rank

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STEP 1: IDENTIFY ELIGIBLEIDENTIFY ELIGIBLE SCHOOLS

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Eligible School Attendance Areas

Percentage of children from low-income families who reside in area . . . .

AT LEAST AS HIGH AS . . . .

percentage of children from low-income families in LEA

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LEA Discretion: Eligibility

“35 Percent Rule” May designate as eligible Must still serve in order Must still serve in order

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LEA Discretion: Eligibility

“Grandfathering” option Continue if served last year But only continue for one year But, only continue for one year

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5 Poverty Measures:

1. Census data2. Free and reduced lunch

TANF3. TANF4. Medicaid eligibility5. Composite of above

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STEP 2: RANK ELIGIBLE SCHOOLS INRANK ELIGIBLE SCHOOLS IN ORDER OF POVERTY

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Ranking and Serving

Exceeding 75% poverty Strictly by poverty Without regard to gradespang g p

At or below 75% poverty May rank by gradespan

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Exception: NO Rank & Serve if

Small LEA exclusion If <1000 students

One school at each gradespan One school at each gradespan

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STEP 3: SERVE SCHOOLS STRICTLYSERVE SCHOOLS STRICTLY IN ORDER OF RANK

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Allocation to Schools

BUT first, calculate set-asides Allocate to schools based on total # of

students from low income families residing in area (including nonpublic)

Discretion on amount of PPA Higher PPAs must be in higher schools on

ranked list

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Allocations given without regard to schoolwide or

targeted assistance model

Title I funding . . . . . . To school based on poverty

. . . To student based on academics

“125 Percent” Rule

If serve any school <35% Then PPAs for all schools must be at

least 125% of LEA’s PPA under Title Ileast 125% of LEA s PPA under Title I allocation Entire LEA Title I-A Grant

# of low income on census

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EXAMPLE:

$1,000,000 total Title I grant 2,000 poverty students

= $500/ student PPA

If serve school <35% poverty, $500 x 1.25 = $625 PPA

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Exception: Rank & Serve

“Skip” school, if:1. Comparability met2. Receiving supplemental state/local funds g pp

used in Title I-like program3. Supp. State/local funds meet or exceed

amount would be received under Title I

Still count and serve nonpublic in area

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Title I Set-Asides

LEA MUST reserve specific percentage:

20% choice transportation and SES 1% parental involvement

10% f i l d (if LEA ID) 10% professional dev (if LEA ID)

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LEA MUST reserve but not specific percentage:

Administration (public and private) Homeless Neglected & delinquentNeglected & delinquent

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LEA MAY reserve:

Incentives to teachers in ID schools (<5%)

Professional development Professional development “other authorized activities”

Summer school Preschool Districtwide program

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CAUTION:

DON’T CIRCUMVENT “RANKING AND

SERVING” RULES!

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Calculating % set asides

Take off entire LEA grant Transferability:

Includes transferred amounts Includes transferred amounts

Carryover: Does not include carry over (apply % only

in first year available)

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Example

Title I, Part A = $500,000 Transferred $30,000 from Title II

Carried over $50 000 from prior year Carried over $50,000 from prior year

Each % set aside applies to $530,000

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Funds for Supp Ed Services and Choice Transportation

Amount equal to 20% of LEA allocation (unless lesser amount needed)

To pay transportation for choice To satisfy all requests for SES services Both

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If no SES, then 20% on choice

If no choice then 20% on SES If no choice, then 20% on SES

If both, then minimum of 5% for choice, 5% for supp services, and 10% for either

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Credit for “Parent Outreach”

Allow limited amount of funds for “parent outreach” to count toward 20%

Capped at 0 2% of LEA Part A grant Capped at 0.2% of LEA Part A grant May spend more for outreach, but only

0.2% counts toward 20% EX - $1 million LEA grant;

20% = $200,000 0.2% = $2,000 can count toward $200,000

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What costs count as “parent outreach”?

Parent notices, communication through the media, internet, and

it di l icommunity, displaying information on LEA’s website, and parent fairs

Allowance, not a requirement30

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“Amount equal to 20%”

May use Title I, Part A; school improvement (sect. 1003); ARRA transferability transferability

State, local, or private funds

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If use Title I Funds, from where?

Off the top of LEA allocation OR from individual school allocations?individual school allocations? Both permitted If school in corrective action or restruct,

<15%

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Use 20% “unless a lesser amount is needed”

How do you know if less is needed?

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To spend less than 20%, LEA must: 200.48(d)(2)(i)

1. Partner, to extent practicable, with outside groups (CBO, FBO, etc.)

2. Send timely, accurate notice to parentsy p3. Ensure SES sign-up forms given

directly to all eligible students/ parents4. Ensure SES sign-up forms made widely

available through broad dissemination (Internet, other media, public agencies)

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5. Provide (at a minimum) two enrollment windows at separate points in school year of sufficientpoints in school year of sufficient length

6. Ensure SES providers are given access to school facilities, using a fair, open and objective process, on same basis as others

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Does LEA need SEA’s permission before reallocating the 20%?

NO!

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LEA must document and notify SEA!

Before reallocating remainder of 20%, LEA must:Maintain records demonstrating it has Maintain records demonstrating it has met criteria

Notify the SEA that it met criteria Notify SEA of amount of remainder it

intends to spend on other allowable activities

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SEA monitors 20% compliance through: (200.48(d)(3))

Regular monitoring (on multi-year cycles) Ensure 6 criteria are met

M f i i More frequent monitoring For LEAs that have spent “significant portion” of

20% on other activities AND subject of “multiple complaints, supported by credible evidence,” regarding implementation of choice or SES

SEA must complete its review by the beginning of the next school year

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Consequences for non-compliance200.48(d)(4)

If SEA finds LEA did not meet all 6 criteria, then LEA must in the subsequent year:subsequent year: Spend amount equal to the remainder of

20% in the subsequent year on choice/ SES, in addition to new 20%, OR

Meet all 6 criteria and obtain permission from the SEA before spending less than full 20% in subsequent year.

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How to reallocate?

If took school allocations, then reallocated to those schools

Subject to equitable participation of private school students

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Set Aside for Parent Involvement

For LEAs with Part A allocations >$500,000

1% minimum reserved 1% minimum reserved Proportional amount to private students 95% of remainder to schools 5% of remainder kept at LEA

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Equitable Services for Private School Students

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Equitable Services:Deriving Allocation

General Formula: Based on number of:

Private school students

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1. Private school students 2. From low-income families3. Who reside in Title I-participating public

school attendance areas

Calculate Allocation for Instruction: 1. Identify eligible school attendance areas2. Rank in order of poverty3. Strictly serve in rank order (i.e., ID who

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is “Participating Public School”)4. Calculate PPA for each area5. Derive allocation amount for each area

must include nonpublic low-income #6. Reserve nonpublic amount

PPA x # of nonpublic low-income students who reside in participating public sch area

Reservation for districtwide instruction

If LEA reserves for “districtwide instructional programs for public

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elementary and secondary” Then proportional amount goes to

nonpublic 34 CFR sect 200.64(a)(2)(i)(A)

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Example

LEA reserves $500,000 for districtwide reading initiative

Of all low-income in LEA residing in

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Of all low-income in LEA residing in participating attend areas, 5% are private

5% of $500,000 to private allocation

Applies to: Summer school After school programs Reading coaches

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Reading coaches

DOES NOT APPLY TO: SES/ Choice (20%) Preschool

Reservation for teachers and families

If LEA reserves funds for parental involvement or professional development

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Then proportional amount to nonpublic

34 CFR sect 200.65(a)

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Example

LEA reserves 1% of $500,000 allocation for parental involvement, or $5,000.

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Of all low-income families residing in participating attend area, 6% are private. Then 6% of $5,000 used for families of participating private school students.

Carryover

General Rule: May carryover up to 15% of Title I, Part A

Reallocated by state if exceeds

Waiver

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Use of Carryover Funds

Flexible 3 Options:

Put back in LEA formula & redistribute1. Put back in LEA formula & redistribute2. Designate for particular LEA activities3. (Allow school to retain)

Cannot use in ineligible school

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3 Pillars of Fiscal Accountability

1. Maintenance of Effort2. Supplement not Supplant

3. Comparability

Heightened Federal Scrutiny on Comparability!!

Common finding of USDE Program Reviewers

Many serious findings in OIG Audits Many serious findings in OIG Audits Focus of “equity” initiatives

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General Rule - §1120A(c)

An LEA may receive Title I, Part A funds only if it uses state and local funds to provide services in Title I schools that, taken as a whole, are at least comparable to the services provided in non-Title I schools.

Reasonable variance is ok (10%)

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If all are Title I schools, all must be “substantially comparable.”

Reasonable variance ok (>10%)

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Timing

Common Finding!

Guidance: Must be annual Guidance: Must be annualdetermination

Review for current year and make adjustments for current year

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Written Assurances

LEA must file with SEA written assurances of policies for equivalence: LEA-wide salary schedule LEA wide salary schedule Teachers, administrators, and other staff Curriculum materials and instructional

supplies

Must keep records to document implemented and “equivalence achieved”

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Demonstrate “equivalence achieved” through:

Student/instructional staff ratios; Student/instructional staff salary ratios;

Expenditures per pupil; or Expenditures per pupil; or A resource allocation plan based on

student characteristics such as poverty, LEP, disability, etc. (i.e., by formula)

Need only meet under 1 approach58

How to measure??

Compare: Average of all non-Title I schoolstoto Each Title I school

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For example: Using student/ instructional staff ratios

Average of all non-Title I schools = 10:1

Title I schools: Lincoln: 10:1 Washington: 9:1Washington: 9:1 Madison: 11:1 Jefferson: 12:1

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Basis for evaluation:CCompare: Grade-spans Large schools Small schools

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Does not apply if LEA has:

Only 1 school Only 1 school at each gradespan

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Exclusions:

Federal Funds Private Funds

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Exclusions:

Need not include unpredictable changes in students enrollmentin students enrollment or personnel assignments that occur after the start of a school year

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Exclusions: LEA may exclude state/ local funds expended for:

Language instruction for LEP students Excess costs of providing services to

d h d b lstudents with disabilities Supplemental programs that meet the

intent and purposes of Title I Staff salary differentials for years of

employment

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Who is “instructional staff”?

Consistent between Title I and non-Title I

Teachers (art, music, phys ed), guidance counselors, speech therapists, librarians, social workers, psychologists

Paraprofessionals – ED: up to SEA/ LEA66

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How to calculate in a SWP?

Problem (theoretically): Cannot exclude state and local funds Cannot identify teachers paid with state Cannot identify teachers paid with state

and local funds

Use (non-federal) expenditures per student

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How to calculate with charter schools?

Charters must be included (if not independent LEAs)

Problem: No LEA control over staffing Problem: No LEA control over staffing Use (non-federal) expenditures per

student

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How will Reauthorization impact Title I Fiscal Requirements?

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Reauthorization Predictions

Comparability Close loophole of excluding salary

differential to reflect seniorityy Move to measuring non-federal

expenditures/ student

Supplement not Supplant Change to reviewing total amount of

funding, not individual expenditure?

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Reauthorization Predictions

Choice/ SES – Unlikely 20% minimum mandate One option of many One option of many Target to underperforming subgroup

Financial incentives for teachers and students

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Reauthorization Predictions

No significant changes to: Ranking & serving rules

Equitable services Equitable services Consolidating funds in schoolwides Time & effort

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i f th t ti d th D C R l fcarries none of the protections under the D.C. Rules of Professional Conduct. Attendance at this presentation, a later review of any printed or electronic materials, or any follow-up questions or communications arising out of this presentation with any attorney at Brustein & Manasevit, PLLC does not create an attorney-client relationship with Brustein & Manasevit, PLLC. You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances.

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